Dukascopy Bank Team
Dukascopy Bank SA
USD/TRY 4H Chart: Falling Wedge
Comment: USD/TRY has recently pierced through the rising support line and confirmed it, which is a strong ‘sell’ signal. Nevertheless, there is still a possibility of a rally next week. The currency pair has formed a falling wedge, meaning that demand is building up. The upside, however, is limited. In case of a close above 2.9350, the first target will be a combination of the weekly PP and Feb 24 high at 2.9527. From there the price might launch an attack on the 2.9850/2.9750 area, but should be stopped there, considering that among others the zone is formed by the monthly PP, February high, and 200-period SMA. At the same time, the US Dollar is oversold—72% of positions are short.
EUR/AUD 4H Chart: Channel Down
Comment: EUR/AUD exited the bullish channel last week. The current outlook is therefore bearish. The pair is expected to bounce off of 1.5330 and fall down to the lower edge of the new channel at 1.4950 before undergoing a notable correction. Next week, the Euro might fall down to 1.4550, but here the price will likely bottom out because of the major up-trend that originated back in 2012. Alternatively, if the rate manages to jump over 1.5330 and then over 1.5420/07, the rally will have the potential to extend up to 1.5630/1.5590, where the weekly pivot point merges with the 200-period SMA, or even up to 1.57, the present level of the lower bound of the broken channel.
This overview can be used only for informational purposes. Dukascopy SA is not responsible for any losses arising from any investment based on any recommendation, forecast or other information herein contained.
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